Debt is sustainable if you create capacity

Economists Carlos Gomes (on the left) and Leão Peres

After the statements by the Chinese ambassador to Angola, Cui Aimin, about Angola's indebtedness to that Asian country, Jornal de Angola went to hear two economists on this issue.

Angola's debt to China can only be considered "sustainable, controllable and not bad", if it serves to broaden the economic base and be used without leaving debts to the future generations, said yesterday the economist, Leo Peres, of the council of Bank of Commerce and Industry (BCI).

Leão Peres reacted, in statements to the Jornal de Angola, to the statements of the Chinese ambassador in our country, Cui Aimin, who did not gave too much importance, at a press conference, to comments about an alleged excess of Angola's indebtedness to that Asian country.

Leão Peres said that debt is only controllable, based on the behavior of the country's economic base and how the values are applied in areas such as the creation of infrastructures, factories, bridges, roads, as well as employment.

In order for the debt of one country to another not to turn out to be perverse, the capacity of the Gross Domestic Product (GDP) and the economic potential of the country must be enough to pay for it.

There are countries and economic blocks, such as the United States and the European Union, with debts that do not constitute a danger to the future. "It all depends on how the economic base of each country is," he referred.

Economist Carlos Gomes said that the ambassador Cui Aimin's pronouncements only reveal that Angola has been able to honor the agreed terms for the fulfillment of the obligations and that everything indicates that the relations between the two countries are still good.

Carlos Gomes said that it is understandable that the Republic of Angola is now open to the world and tending to diversify its partners, "each one with its own importance."

China has contributed to the reconstruction of the country in structuring projects such as the construction of roads and bridges, and will not be disregarded. "I believe that China is open to the needs of Angola in the future," defended the economist.